2 November 1989 Ministerial Letter 00288 F - CCA Class 28 - Major Mine Expansion

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Attention:  Mr. Donald G. Schell Director Mining Tax Legislation Interpretation Division

November 2, 1989

Dear Mr. Sully:

Re:  Class 28 - Major Mine Expansion

We are writing to request your opinion concerning subparagraph (a)(ii) of the Class 28 of Schedule II of the Regulations to the Act ("Class 28(a)(ii)").

Background

We have been asked to opine that a major expansion has taken place, for the purposes of Class 28(a)(ii), in the following instance:

24(1)

Analysis

Class 28(a)(ii) includes assets situated in Canada that would otherwise be included in another class that were "acquired by the taxpayer principally for the purpose of ... and each of which ... was the subject of a major expansion after November 7, 1969 whereby the greatest designed capacity, measured in tons of input of ore, of the mill that processed the ore from the mine was not less than 25 per cent greater in the year immediately following the expansion than it was in the year immediately preceeding the expansion".

In the present instance it is our view that there has been an 24(1)

Department of Finance's Comments

We referred this issue to Finance and received their comments as follows:

21(1)(b)

Queries

24(1) 21(1)(b)

If you require further information please contact the writer.

Director GeneralRulings DirectorateLegislative and IntergovernmentalAffairs Branch